Most business leaders across Asia-Pacific say money going into artificial intelligence is still being spent on small, incremental changes rather than anything that reshapes how their organisation operates, according to new research from Avanade. The findings come from the company’s Build Beyond Limits: AI Reality Report, which surveyed 1,400 business decision-makers across APAC as part of a wider global study of 3,600 respondents.

High confidence, limited transformation

Seventy-six per cent of APAC respondents describe their organisation’s AI journey as Established, Advanced or AI-first, and 73 per cent say they have high or complete confidence that their teams are using AI effectively to deliver on strategy and goals. Yet only 17 per cent say AI has fundamentally reshaped how their teams operate. Separately, 76 per cent agree that their own organisation publicly portrays itself as more AI-mature than it actually is.

Investment still tilted toward small wins

Seventy-nine per cent of APAC respondents agree that too much of their organisation’s AI investment goes toward incremental improvements rather than transformational opportunities. Only 43 per cent say their organisation uses business-value or ROI targets to judge whether its AI efforts are making meaningful progress, which suggests many companies are still evaluating AI adoption without tying it clearly to business outcomes.

Financial returns remain unchecked

Sixty-eight per cent of APAC respondents say their organisation has yet to formally calculate the financial return on its AI investment and have the results reviewed by finance or senior leadership. Ben Beath, Chief AI Officer at Avanade, said too many organisations are measuring AI progress by activity rather than impact.

“Deploying tools, running pilots and improving productivity are important milestones, but they are not the destination. What remains to be seen is whether organisations are truly changing and investing in how decisions are made, how work gets done and how value is created through AI. AI-native challengers are building these capabilities from day one, and established organisations must think just as boldly about the future they want to create.”

Where APAC leaders should draw the line

Bhavya Kapoor, President of Avanade Asia Pacific, said APAC leaders need to be clear about which kind of AI investment they are making, and set objectives and accountability to match.

“Incremental AI improvements can create real value, but improving existing operations and fundamentally transforming a business are different ambitions. APAC leaders need to be clear about where each applies, with investment decisions and measures of success to match. Where transformation is the goal, that means redesigning workflows, responsibilities and decision-making, with clear ownership of outcomes. The real test is whether the intended change happens and its value can be demonstrated.”

The findings are based on a survey of 3,600 business decision-makers across 11 markets, including 1,400 respondents in Asia-Pacific, conducted by independent research firm Vanson Bourne in August and September 2026 on behalf of Avanade.